Singapore stocks surge as US inflation begins to slow; STI up 1.7%

THE Straits Times Index (STI) climbed 1.7 per cent or 55.15 points to close at 3,228.33 on Friday (Nov 11), as Asian markets rallied on lower-than-expected US inflation.

The STI finished 3.1 per cent higher for the week, as it extended its winning streak for the sixth straight session.

In the broader Singapore market, winners outnumbered losers 443 to 180, with 2.14 billion securities worth S$1.93 billion traded.

Key Asian markets all closed higher, mirroring buoyant sentiment on Wall Street. Hong Kong’s Hang Seng index, Japan’s Nikkei 225 and South Korea’s Kospi rose between 3 per cent and 7.7 per cent.

“The downside surprise in US inflation data has sparked the single best day for Wall Street since April 2020, as the significant underperformance in the US Consumer Price Index (CPI) release drove a more dovish calibration of interest rate expectations,” said IG market strategist Yeap Jun Rong.

“The sharp fall in US dollar on the US inflation data may provide huge relief for the Asia indices, riding on their historically inverse relationship while fuelling hopes that seemingly less pressure on the Fed’s tightening process may provide lesser trade-off for global growth conditions,” he added.

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The top performer on Singapore’s blue-chip index was Yangzijiang Shipbuilding, which jumped 7.8 per cent or S$0.10 to S$1.38. The counter was also the most heavily traded constituent stock, with 79.7 million shares changing hands.

At the bottom of the table was Jardine Cycle & Carriage (Jardine C&C), which fell 2.8 per cent or S$0.86 to S$30.25. Jardine C&C was also the biggest loser for the week, shedding a total of 3.4 per cent.

The best performer on the STI for the week was CapitaLand Investment, which gained 10.9 per cent over the past five days.

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Asia: Shares surge as investors cheer slower US inflation

The trio of local banks all closed higher on Friday. DBS climbed 0.7 per cent or S$0.25 to S$34.79, UOB rose 1 per cent or S$0.29 to S$29.50, while OCBC added 0.3 per cent or S$0.03 to S$12.27.